Lyon: Raise LENOVO GROUP (00992) target price to HKD 12.8, expected adjusted net profit to increase by 14% in the next quarter.

Lyon released a research report stating that LENOVO GROUP (00992) is expected to see a 13% year-on-year increase in revenue and a 14% increase in adjusted net profit for the second quarter of the 2026 fiscal year. The growth of the IDG business revenue will benefit from strong personal computer shipments. Despite facing short-term pressures, the server business is still expected to achieve a break-even in the fourth quarter of the 2026 fiscal year. Some server orders have been delayed for delivery in subsequent quarters. The bank has raised its adjusted net profit for the second quarter of the 2026 fiscal year by 3% to $436 million, raised its target price from HK$11.7 to HK$12.8, and maintains an outperform rating.